The main legal point established in the judgment is the significance of timely filing of the Return of Income, the consequences of wilful attempt to evade tax, penalty, and interest chargeable, and the relevance of the pendency of appeal before the Tax Appellate Authority in prosecuting the assessee for non-filing the Return in time or for the attempt to evade tax.

JUDGMENT :

(Prayer: Criminal Original Petition has been filed under Section 482 of Criminal Procedure Code to invoke Section 482 of Cr.P.C., and call for the entire records pertaining to the complaint in EOCC.No.149 of 2018, dated 23.04.2018 on the file of the Additional Chief Metropolitan Magistrate (EO-II), Egmore at Allikulam Commercial Complex, Chennai and quash the same.)

1. These batch of Criminal Original Petitions are filed to quash the complaints laid by the Income Tax Department for prosecution under Sections 276 CC and 276C (1) of the Income Tax Act, 1961.

2. The prosecution details of each case which is the subject matter of these petitions are tabulated as below:-

(i) Prosecution under Section 276 CC of the Income Tax Act, 1961

(ii) Prosecution under Section 276 C (1) of the Income Tax Act, 1961

3. According to the Income Tax Department, the petitioner herein, an income tax assessee having taxable income failed to file her Return of Income for the Assessment Years 2011 to 2016. She also failed to pay the tax due before the due date of filing the return of income with wilful intention to evade tax payable to the Exchequer. Under Section 139 (1) of the Income tax Act, 1961, the assessee has to file the Return of Income within the time prescribed, failing which, the assessee is liable for prosecution under Section 276 CC of the Income Tax Act, 1961. If the assessee attempts to evade tax, penalty and interest chargeable wilfully, it is punishable under Section 276C (1) of the Income Tax Act, 1961.

4. In this case, the petitioner failed to file her Return in time. In the course of enquiry made under Section 131(1A) of the Income Tax Act, 1961, M/s Ganesan Associates, Chartered Accountant represented the assessee and admitted the failure to file Returns. The enquiry revealed non-filing of Return in time and there was also an attempt to evade tax wilfully. Show cause notices were issued for each Assessment Years calling for explanation, why prosecution proceedings should not be initiated for violation of Sections 276 CC and 276C (1), which are two distinct offences.

5. The assessee in response to the show cause notices, contended that she had paid the tax for the relevant Assessment Years with interest. The delay in filing the Return of Income was not wilful or deliberate, but beyond her control, since she left India and settled in USA and was not abreast of Indian Tax Law. Not satisfied with the explanation, prosecution was launched as tabulated above and the said prosecution is under challenge in these batch of petitions.

6. The quash petitions are pegged on the ground that during the enquiry proceedings, the representative of the assessee sought time to furnish detailed written statement to show that the delay in payment of tax is neither wilful nor with any intention to evade tax payable. As soon as the notice, the tax payable was remitted with interest, to show the bonafide that no intention or attempt to eva